Publicis vows fight on Bozell deal

Published on November 19, 1997.

Publicis today restated its offer to buy True North Communications and its opposition to True North's merger with Bozell, Jacobs, Kenyon & Eckhart.

In a statement, Publicis said it is "disappointed" by the True North board's rejection of its $28 per share offer and reaffirmed its intention to vote its True North shares, approximately 18.5% of True North's common, against the Bozell merger. It said it is considering "all options available to it.

Analysts at investment bank Donaldson Lufkin & Jenrette said the Publicis offer appeared to be "a thinly veiled attempt to postpone or thwart the BJK&E merger." The report adds Publicis is unlikely to stop the BJK&E deal since it requires a simple majority shareholder vote. True North's management holds 16% of the stock and most shareholders will vote with them, said the report.

Separately, Publicis said billings rose 21% in the third quarter to $l billion, from $835 million in 1996. For nine months, billings climbed 16% to $3.1 billion from $2.7 billion a year ago.